Walgreens Boots Alliance Suspends Quarterly Dividend as Company Continues Disciplined Execution Against Strategic Priorities
Walgreens Boots Alliance (WBA) has announced the suspension of its quarterly cash dividend as part of its broader turnaround strategy. The decision comes as management evaluates and refines the company's capital allocation policy. This strategic move aims to strengthen the company's balance sheet through debt reduction and improved free cash flow.
The company cited upcoming cash requirements, including litigation costs and debt refinancing, as key factors in the dividend suspension decision. WBA's leadership emphasizes their commitment to executing strategic priorities and maintaining financial discipline to create long-term value.
Walgreens Boots Alliance (WBA) ha annunciato la sospensione del suo dividendo in contante trimestrale come parte della sua più ampia strategia di risanamento. La decisione arriva mentre la direzione valuta e perfeziona la politica di allocazione del capitale dell'azienda. Questa mossa strategica mira a rafforzare il bilancio dell'azienda attraverso la riduzione del debito e un miglioramento del flusso di cassa libero.
L'azienda ha citato le prossime esigenze di cassa, inclusi costi legali e rifinanziamento del debito, come fattori chiave nella decisione di sospendere il dividendo. La leadership di WBA sottolinea il proprio impegno nell'esecuzione delle priorità strategiche e nel mantenimento di una disciplina finanziaria per creare valore a lungo termine.
Walgreens Boots Alliance (WBA) ha anunciado la suspensión de su dividendo en efectivo trimestral como parte de su estrategia más amplia de reestructuración. La decisión llega mientras la dirección evalúa y refina la política de asignación de capital de la empresa. Este movimiento estratégico tiene como objetivo fortalecer el balance de la empresa mediante la reducción de deudas y la mejora del flujo de caja libre.
La empresa citó las próximas necesidades de efectivo, incluidos costos de litigio y refinanciamiento de deudas, como factores clave en la decisión de suspender el dividendo. El liderazgo de WBA enfatiza su compromiso con la ejecución de las prioridades estratégicas y el mantenimiento de la disciplina financiera para crear valor a largo plazo.
월그린 부츠 얼라이언스 (WBA)는 전반적인 턴어라운드 전략의 일환으로 분기 현금 배당금을 중단한다고 발표했습니다. 이 결정은 경영진이 회사의 자본 배분 정책을 평가하고 조정하는 과정에서 내려진 것입니다. 이러한 전략적 조치는 회사의 재무 상태를 강화하기 위해 부채를 줄이고 자유 현금 흐름을 개선하는 것을 목표로 하고 있습니다.
회사는 소송 비용 및 부채 재융자를 포함한 다가오는 현금 요구 사항을 배당금 중단 결정의 주요 요인으로 언급했습니다. WBA의 리더십은 전략적 우선 순위를 실행하고 재정적 규율을 유지하여 장기 가치를 창출하겠다는 의지를 강조하고 있습니다.
Walgreens Boots Alliance (WBA) a annoncé la suspension de son dividende en espèces trimestriel dans le cadre de sa stratégie de redressement plus large. Cette décision intervient alors que la direction évalue et affine la politique d'allocation du capital de l'entreprise. Ce mouvement stratégique vise à renforcer le bilan de l'entreprise grâce à la réduction de la dette et à l'amélioration du flux de trésorerie disponible.
L'entreprise a cité les besoins de trésorerie à venir, y compris les frais de litige et le refinancement de la dette, comme des facteurs clés dans la décision de suspension du dividende. La direction de WBA souligne son engagement à exécuter les priorités stratégiques et à maintenir une discipline financière pour créer de la valeur à long terme.
Walgreens Boots Alliance (WBA) hat die Aussetzung seiner vierteljährlichen Bargelddividende als Teil seiner umfassenderen Turnaround-Strategie bekannt gegeben. Die Entscheidung wurde getroffen, während das Management die Kapitalallokationspolitik des Unternehmens evaluiert und verfeinert. Dieser strategische Schritt zielt darauf ab, die Bilanz des Unternehmens zu stärken durch Schuldenabbau und verbesserten freien Cashflow.
Das Unternehmen nannte bevorstehende Cash-Anforderungen, einschließlich Rechtskosten und Schuldenrefinanzierung, als Schlüsselfaktoren für die Entscheidung zur Aussetzung der Dividende. Die Führung von WBA betont ihr Engagement für die Umsetzung strategischer Prioritäten und die Aufrechterhaltung finanzieller Disziplin, um langfristigen Wert zu schaffen.
- Focus on debt reduction and balance sheet strengthening
- Improved free cash flow potential
- Strategic commitment to long-term financial sustainability
- Complete suspension of quarterly dividend payments
- Significant upcoming litigation and debt refinancing costs
- Cash flow concerns requiring immediate action
- Indication of financial strain requiring turnaround efforts
This change in capital allocation is aimed at strengthening WBA’s balance sheet by reducing debt over time and improving free cash flow, as the company works toward achieving a retail pharmacy-led turnaround underpinned by a sustainable economic model. The company’s cash needs over the next several years, including with respect to litigation and debt refinancing, were important considerations as part of the decision to suspend the dividend.
WBA leadership remains focused on successfully executing against its strategic priorities and maintaining financial discipline, which it believes will deliver sustained value creation over the long term.
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is an integrated healthcare, pharmacy and retail leader serving millions of customers and patients every day, with a 175-year heritage of caring for communities.
A trusted, global innovator in retail pharmacy with approximately 12,500 locations across the
WBA employs approximately 312,000 people, with a presence in eight countries and consumer brands including: Walgreens, Boots, Duane Reade, the No7 Beauty Company and Benavides. The Company is proud of its contributions to healthy communities, a healthy planet, an inclusive workplace and a sustainable marketplace. In fiscal 2024, WBA scored
More Company information is available at www.walgreensbootsalliance.com.
Cautionary Note Regarding Forward-Looking Statements: All statements in this press release that are not historical, including statements regarding WBA’s broader turnaround efforts and refining its capital allocation, generating positive cash flows and strengthening WBA’s balance sheet, the ability of WBA to pay dividends in the future, achieving a sustainable economic model, executing against strategic priorities and delivering sustained value creation over the long term, are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions, known or unknown, that could cause actual results to vary materially from those indicated or anticipated. These risks, assumptions and uncertainties include those described in Item 1A (Risk Factors) of our Form 10-K for the fiscal year ended August 31, 2024, and in other documents that we file or furnish with the Securities and Exchange Commission. If one or more of these risks or uncertainties materializes, or if underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. All forward-looking statements we make or that are made on our behalf are qualified by these cautionary statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise.
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WBA Media Relations
+1 224 813 9057
WBA Investor Relations
Eric Wasserstrom
+1 847 315 2922
Source: Walgreens Boots Alliance
FAQ
Why did Walgreens (WBA) suspend its dividend payments in 2024?
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What are the main financial challenges facing WBA leading to the dividend suspension?
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